The Mamdani administration is now facing a federal lawsuit that claims its plan to introduce taxpayer-funded grocery stores in the city conflicts with antitrust regulations, as reported by The Post.
The lawsuit is being brought by the National Supermarket Association, along with two of its members—City Fresh Market in Harlem and C-Town Supermarket in the Bronx. According to the association’s president, Anthony Peña, the suit is expected to be filed in the Southern District of New York on Tuesday evening.
Peña cites the millions of dollars in city subsidies allocated for Mamdani’s proposed five publicly operated grocery stores as an unfair advantage in the marketplace.
“Our position is that these subsidies should be accessible to everyone,” Peña noted. “This isn’t about fearing competition; it’s about opposing unfair competition.”
His group, representing around 450 independent grocery stores throughout New York City, is collaborating on the lawsuit with the America First Policy Institute, a nonprofit led by Larry Kudlow, who previously served as a top economic advisor to President Trump.
This lawsuit represents the second significant legal challenge against the city’s initiative to establish public supermarkets in low-income areas. The stores are expected to operate rent-free and offer essential products at prices at least 30% lower than those of nearby businesses, including smaller bodegas.
In August, the Multicultural Business Coalition—made up of 50 chambers of commerce that advocate for diverse businesses in the city—filed two lawsuits in state court, claiming that allowing these city-run stores to open would violate the civil rights of business owners.
City Fresh Market, situated just a block away from one proposed municipal store, is located at 125 E. 116th St. Mamdani’s plan includes establishing a 9,000-square-foot store at La Marqueta on Park Avenue and E. 115th Street, with an estimated cost of $30 million funded by taxpayers.
“Independent supermarkets have been vital in our neighborhoods, providing jobs, paying taxes, and serving families for generations,” Peña remarked. “They deserve a fair competition environment, not one where they are up against a government-subsidized entity operating with unique advantages.”
Last month, a New York City Economic Development Corporation official drew laughter with comments about potentially offering “grants” to existing shop owners who might lose business to these city-run supermarkets. The agency quickly retracted the statement following criticism during a NY1 interview.
An EDC spokesperson previously clarified, “We are not currently considering any grant programs for existing grocers.”
Nonetheless, the spokesperson added that the city is exploring options for tax abatements, incentives, and zoning benefits through existing programs to assist small businesses.
Mamdani’s grocery store initiative is part of his broader goals to make the city more affordable, which was a significant focus of his 2025 campaign.
The first store is planned to open next year in the Hunts Point area of the Bronx, at the site of the former Spofford Juvenile Detention Center—close to the C-Town Supermarket at 809 Southern Blvd, which is participating in the lawsuit against the city. The Harlem location is anticipated to open in 2029, but the opening dates for stores in Brooklyn, Queens, and Staten Island have yet to be announced.
The Post has reached out for comments from the mayor’s office.
Previously, Mamdani expressed confidence in the legality of the grocery store initiative and its significance, especially in light of the Multicultural Business Coalition’s lawsuit.
